WOOLWORTHS TO SHAKE UP HOW STORES OPERATE IN FIRST RESTRUCTURE SINCE 2011

ELI GREENBLAT
JUNE 5, 2019
The Australian 

Woolworths has triggered a restructure of its in-store operating model, the first time it has rejigged the way its stores deploy staff and serve shoppers since 2011, with the supermarket giant hoping a better focus on fresh and convenience will give its supermarkets the edge it needs to strip customers from rival chains.

This morning Woolworths (WOW) staff were told about the changes to in-store operations which is not expected to cause any decrease in employee numbers although some traditional roles within the supermarket will disappear.

The changes are the first undertaken by the supermarket at a store level since 2011 and are aimed at meeting changing customer needs and expectations, Woolworths staff were told. They will also open more opportunities for team member development and career progression in stores.

With a greater focus on fresh food, convenience and customer service, the new structure will see the creation of two new departments within stores — fresh service and fresh convenience. Under the new model, fresh service will manage customer service at the deli, butchery and seafood counters. Fresh convenience will manage dairy, eggs, pre-pack meat, branded bread and meal solutions.

Woolworths believes the new operating model will provide a clearer career path for team members, and the opportunity to build skills in new areas to better serve customers. This will be backed by more than $10 million in team training and development.

New opportunities are also being created via assistant team manager roles, creating a greater layer of management development positions.

Woolworths supermarkets managing director Claire Peters said in a memo to staff that customers’ needs have changed, “but the way we have been operating our stores has stayed the same.”

“With customers’ ongoing expectations in fresh, and more shoppers looking for increased convenience, our stores need to deliver the best possible customer experience, every time.

“We’re introducing a new store operating model which will empower our teams to be more customer-focused than ever before.

“For our team members in store, it means more skills, training and opportunities to progress. This is an important next step forward in our Customer 1st and Team 1st strategy.”

The new operating model has already been rolled out across a group of stores in New South Wales, with the changes being received positively by both customers and team members.

“All team members will be fully supported through the restructure of our store operating model and those impacted by role changes will be provided the opportunity to apply for new roles in the revised structure.”

Both Woolworths and Coles have been pouring hundreds of millions of dollars into pivoting their supermarket stores to better cope with changing consumer tastes, especially around the area of fresh food and convenience, as shoppers demand better quality fresh groceries, pre-cooked or prepared meals and more convenient shopping offers such as click & collect, online ordering and smaller metro stores.